REPORT

On

CONSUMER BEHAVIOR TOWARDS LAYS CHIPS: A STUDY CONSUCTED ON RURAL

CONSUMERS IN MACHHRA VILLAGE OF MEERUT DISTRICT.

By

Sakshi Palod

Nikhil Saxena

Akash Arora

Sagar Jairath

Under the Supervision of

Dr Ritesh Dwivedi

Associate Professor

Department of Marketing

At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

ACKNOWLEDGMENT

i
We would also like to thank Amity University to give us an opportunity to work CONSUMER
BEHAVIOR TOWARDS LAYS CHIPS: A STUDY CONSUCTED ON RURAL CONSUMERS IN
MACHHRA VILLAGE OF MEERUT DISTRICT.

We would like to express special thanks and gratitude to our faculty guide, Dr Ritesh Dwivedi whose
guidance at every step helped us to complete my rural report on the topic. Also, the cooperative
participation from the inhabitants of Machhra village has been great help in carrying out this report and
is acknowledged with reverential thanks.

Team Lays

MBA- M&S (Class of 2020)

ii
 TABLE OF CONTENTS

List of Tables …………….………………………………………………………….………. 8

List of Figures…………………………………………………………………..……………..9

Abstract………………………..…………………...……………………………..…………. 10

1. Introduction ………………………………………………………………….…….……..11

1.1 Company Profile …………………………………………………………………… 12

1.2 Pros and Cons of Skill Development Applications ……………...…………………. 12

1.3 Problem Statement …………..……………………………………………..………. 13

1.4 Purpose of Study …………………………………………………………………. ...13

1.5 Research Questions ………………………………………………………………… 14

1.6 Context of the Study ……..………………………………………………………… 14

1.7 Significance of the Study ………..…………………………………………………..15

1.8 Definitions. .………………………………………………………………………… 15

1.9 Summary……………………………………………………………………………..15

2. Research Methodology …………………..……………………………….…………….. 20

2.1 Research Design ……………………………………………………………..…….. 21

3.2 Sampling ……………………………………………………………………..…...... 21

3.3 Instrument ……………………………………………………………………..….. ..21

3.5 Choice of study design: online survey ……………………………………….……...21

3.6 Data Collection ……………………………………………………………….……..22

3.7 Constructing the questionnaire …………………………………………….………..22

4. Data Analysis ………………………………………………………………………….... 23

4.1 Age……………………………………………………. …………………………… 24

4.2 Gender……………………………………….. ………………………...………...….25

4.3 Service Line…………………………………………... …………………………….25

4.4 Learning a New Skill……………………………………………………………...…26

4.5 Adopting a Skill Building Platform………………………………………………….27

4.6 Adopting Digital platform……………………………………………………………27

4.7 Hurdles in Learning…………………………………………………………………..28

4.8 Skills to Learn………………………………………………………………………...29

iii
4.9 Skills to Teach………………………………………………………………………...31

4.10 Preferred Timeline…………………………………………………….....…………..32

5. Findings……………………………………………………………………………..……...34

6. Conclusion ……...………………………………………………………………..…….…. 36

6.1 Summary ……………………..……………………………………………..…….…. 37

6.2 Recommendations and Scope of Further Studies ……….………………………...… 37

6.3 Future of Tech-Based Skill Development Apps .………………………...……..….... 38

6.4 Limitations………………………………………………………………………..…...38

References…………………………………………………………………………………...…39

Appendices ………………………………………………………………………...………..... 40

iv
 LIST OF TABLES

TABLE

Table 1.1: Overview of Machhra Village Retrieved from villageinfo.in

Table1.2 Connectivity of Machhra Village Retrieved from villageinfo.in

v
 LIST OF FIGURES

FIGURE

Figure 1.1: Market Share of Potato wafers Retrieved from Global Data Analytics.

Figure 1.2: Market Share of Potato wafers in Rural India Retrieved from Global Data Analytics.

vi
 ABSTRACT

CONSUMER BEHAVIOR TOWARDS LAYS CHIPS: A STUDY CONSUCTED ON RURAL

CONSUMERS IN MACHHRA VILLAGE OF MEERUT DISTRICT.

The world of today is changing fast. India is no exception. Especially after the opening up of the economy, the
pace of change that India and its people are experiencing in their socio-cultural milieu is mind boggling. India,
with its wide diversity, offers a fascinating scope to study the host of changes which developmental activities have
brought about in its social & economical framework. While it is possible to get some estimates of the macro
changes taking place in India, it is impossible to get any accurate measures of the subjective experiences that
proceed, accompany or follow such changes. However, the fact remains that the profile of the Indian market is
vastly different from what it was earlier. Although these changes are difficult to measure at the micro level,
nevertheless, they have been of great significance to marketers. Any marketer is keen in closely monitoring the
changes in terms of numbers and specially keeping regular track of the changing pattern of consumers’ aspirations
and competitive actions.

In our country 70% of the total population lives in villages. Revolution and economic reforms in India have
brought out several changes in the whole market environment, especially in rural market. Several studies, seminars
and meetings have been conducted on the rural markets with special reference to the fast moving consumer goods.
For studying the above changes in market in liberalized era, the attempt has been taken to study on rural consumer
behaviour towards Lays potato chips in Machhra village of Meerut district.

“The future lies with those companies who see the poor as their customers." -C.K.Prahalad

In this report, the primary objectives are to review the motivation level and behaviour of the rural
consumers towards Lays potato chips and then develop a marketing campaign to spread awareness about
the same. The study is directed towards the rural consumers of Machhra village and quantitative survey
is taken of 200 respondents to reveal their interest in purchasing Lays as a snacking option. About 66%
of respondents have not heard about the brand but 95% are open to try snacks of other brands. This could
be an opportunity for brands to tap the unexplored market and that skill development will help their day
to day activities in the organization. The report also analyses the type of campaign which would be
successful to get a rural marketshare for the product. This thereby gives an opportunity to the brand to
explore regional avenues. The report then concludes with a recommendation for further studies to be
done to implement the campaign proposed.

vii
 Chapter 1
INTRODUCTION

viii
1.1 MACHHRA VILLAGE

Machhra village is located in Mawana Tehsil of Meerut district in Uttar Pradesh, India. It is situated
32km away from sub-district headquarter Mawana and 12km away from district headquarter Meerut. As
per 2019 stats, Machhra village is also a gram panchayat. The total geographical area of village is 448.47
hectares. Machhra has a total population of 7000 peoples. There are about 586 houses in Machhra
village. Kithor is nearest town to Machhra which is approximately 4km away. Machhra is well known for
education in adjacent area. Chaudhary Shivnath Singh Shandilay College is situated in Machhra which offers
educational programs since 1953.

Machhra - Village Overview

Gram Panchayat : Machhra

Block / Tehsil : Mawana

District : Meerut

State : Uttar Pradesh

Pincode : 250106

Area : 448.47 hectares

Population : 7000

Households : 586

Nearest Town : Kithor (4 km)

Altitude: 219 meters. Above

Seal level.

Language Hindi and Urdu

Assembly Kithore assembly

constituency constituency

Assembly MLA Shahid Manzoor

Lok Sabha Meerut parliamentary

constituency constituency

ix
 Parliament MP Rajendra Agarwal

Serpanch Rakesh Tyagi

Table 1.1: Overview of Machhra Village Retrieved from villageinfo.in

Connectivity of Machhra Village

Type Status

Public Bus Service Available within <5 km distance

Private Bus Service Available within <5 km distance

Railway Station Available within <5 km distance

Table 1.2: Connectivity of Machhra Village Retrieved from villageinfo.in

Nearby Villages of Machhra

 Amarpur Mazra Khandawli

 Hasanpur Kalan

 Meghrajpur

 Rachhoti

 Nagli Abdulla

 Kasimpur

 Muradpur Urf Sholda

 Nagli Kithaur

 Rehadra

 Kailirampur

 Aminabad Urf Baragoan

1.2 WHAT’S THE STATE OF PLAY IN INDIA’S POTATO CHIPS MARKET?

x
“The ₹20,000-crore (organised) salty snacks segment has been reporting a steady growth. Over the past few
years, it has been growing at 10-12 per cent and it is expected to maintain the same level of growth. But the
rural market is growing faster than urban with 2-3 percentage points more in growth rate. It’s a trend we have
been seeing and I believe it will continue for next 2-3 years,” Jagrut Kotecha, Vice President – Snacks Category
at PepsiCo India.

India’s appetite for potato chips is growing rapidly – with some major players building a nationwide presence to
cater to rising demand. According to data analytics firm GlobalData, India’s potato chips/crisps market was
worth US$2.59bn in 2017, growing at an annual rate of 18.7%, and is expected to further expand to a value of
$5.5bn in 2022.

The sale of branded chips sold by manufacturers across India is dominated by a handful of big companies
– making up $900m of the segment’s total receipts,

Haldiram’s ‘Chips’ brand, the company holds a 14% share of the market for nationally branded potato
chips, tussling with Balaji Wafers (at 15%) and ITC (on 16%), with all three some way behind PepsiCo,
which accounts for 40% of sales, Mahajan says, citing independent, third-party market research
commissioned by Haldiram to guide its sales.

MARKETSHARE
Pepsico ITC Balaji Haldirams

16%

47%
18%

19%

Figure 1.1: Market Share of Potato wafers Retrieved from Global Data
Analytics.

There are many smaller potato chip brands that dominates the rural market, but these five companies
dominate sales of brands which are sold nationwide. The growth in India’s potato chips market has been
driven by rising household incomes. Unlike chocolate or sugar confectionery, where children are the
main consumers, the growth in potato chips sales in India is uniform across age segments, Ankur Bisen,
senior vice president at Gurgaon-based consultancy firm Technopak, says. “During a day there are
multiple occasions to eat them, while meeting friends for a drink, during travelling or as an
accompaniment to normal food.”

xi
 Innovation on flavour has fuelled changing taste preferences. PepsiCo underlines the need to experiment
across snacking categories. “We’ve evolved our brands over the years to cater to the changing taste
preferences of our consumers and have introduced several variants across our product portfolio,” a
spokesperson for PepsiCo’s Indian business says.

The work PepsiCo has carried out on its potato chips range in India has also looked at more affordable
products and at trying to make their snacks healthier.

In 2016, PepsiCo introduced Lay’s Crispz and Lay’s Twistz potato chips – Crispz are thinner and crispier
than Pepsi’s standard lines and Twistz are sold in twirl shapes – both priced at INR5 (US$0.07). Last
year, meanwhile, PepsiCo announced it had cut the sodium in its Indian Magic Masala and Spanish
Tomato Tango flavours by 13-15%.

Snacks variety available to rural consumers.

Extruded Snacks Brands:

 PepsiCo (Kurkure, Cheetos)
 DFM Foods CRAX Corn Rings, Natkhat
 Balaji Wafers Wheels masala, wheels tomato, Pop Rings Masala, Chataka Patka
 Pratap Snacks (Yellow Diamond, Rings, Chulbule, Puff Fungroo)

Chips Brands:
 PepsiCo (Lay's, Uncle Chips)
 Haldirams (Classic Salted, Pudina Treat, Kettle Chips, Aloo Masala, Papri Chaat)
 Bikanervals Bikano (Chatak Masala, Tangy Tomato, Simply Salted, Yummy Cream, Wafers)
 Balaji Wafers (Simply Salted, Magic Masala, Pizzy Masala, Tomato Masti)

Namkeen Brands:
 PepsiCo Lehar
 Haldirams (Khatta Meetha, Moong Dal, Mixture, All in One, Aloo Bhujia, Badam Lachcha, Tasty
Peanuts, Shashi Mixture, Navratan Mixture)
 Bikanervala (Aloo Bhujia, Badam Lachcha, Tasty Peanuts, Shashi Mixture, Navratan Mixture)
 DFM Foods (Mast Mattar, Kaju Mixture, Navratan, Aloo Bhujia)
 Balaji Wafers (Mung Dal, Chana Dal, Aloo Sev, Khatta Mitha, Nibu Chatka
 Pratap Snacks (Chana Masala, Peanuts, Classic Peeanuts, Falhari Chivda, Chana Dal

1.3 THE KEY GROWTH DRIVERS FOR THE SNACKS INDUSTRY.

xii
  Rise in disposable income: The demand for snacks has been rising with the increase in disposable
income coupled with more and more consumers falling under the double income families. The growing
Indian middle class is an attraction for companies who are out there to woo them.

 Availability of newer variants of a product: Consumers are spoilt for choice when it comes to choosing
products. Newer variants of a product will help a company in getting the attention of consumers who
look for innovation in products.

 Product pricing: The food and beverages industry could be price sensitive, making price the determining
factor in increasing volumes, at least for lower range consumers. For middle and upper range consumers,
it is the brand name, technology used and product features that are important.

 Rise in the share of organised retail: Rise in organised retail will set the growth pace of the Indian
consumer food and beverage industry. According to a working paper released by the Indian Council for
Research on International Economic Relations (ICRIER), organised retail which constituted a mere four
percent of the retail sector in FY07 is likely to grow at 45-50% per annum and quadruple its share in the
total retail pie 16% by 2011-2012. The share will grow with bigger players entering the market.

 Innovative advertising and brand promotion: Sales promotion measures such as discounts, free gifts
and exchange offers help a company in distinguishing itself from others.

1.4 PROBLEM STATMENT

Despite the innovation on flavour Pepsico still struggles to grab the mind share and pocket share of the
Rural consumers with local brands ruling the roost over there. It could be argued that, with the category
enjoying growth, perhaps the marketing campaign has not been able to test the water of rural India.

Available studies on potato chips industry have mostly focused on urban market but limited empirical
studies have been conducted into the rural segments wherein the consumer behaviour of villagers is
gauged.

The objective of this report is to showcase the consumer behaviour of Machhra villagers towards Lays
potato chips as a snacking option in order to design a marketing campaign with product, price, promotion
and place for the Lays chips to tap the rural market.

xiii
 MARKET SHARE RURAL
Pepsico Haldirams Parle Others

25%
30%

10%

35%

Figure 1.2: Market Share of Potato wafers in Rural India Retrieved from
Global Data Analytics.

1.5 PURPOSE OF THE STUDY

Primary:

I. To qualitatively analyse the future potentiality of Lays potato chips in rural India.
II. To analyse the behaviour of rural consumers towards Lays potato chips.
III. To find out the factors which motivate rural consumers to learn buy.

Secondary:

I. To determine the objective of marketing campaigns by attributing to the success of Lays in rural India.

1.6 RESEARCH QUESTIONS

I. Do the types of snacking options attract consumers?

II. What kind of marketing campaign should be directed towards the target audience?
III. What are the factors which drive rural consumers to buy snacks?
IV. What are the factors which inhibits the rural consumers from trying new products?

1.7 SIGNIFICANCE OF THE STUDY

In order to solve the hurdles for tapping the rural market there is a need for a marketing campaign which
will enable the below mentioned things thereby requiring a rural market research to be conducted. This
study gauges the success of marketing campaigns encompassing the four stages-

I. Additions to already existing marketing campaign.

xiv
 II. Awareness of the campaign designed.
III. Activation campaign directed towards the rural consumers.
IV. Adoption of lays as a snacking option.

1.8 DEFINATIONS

Rural marketing:

There is no official definition of what constitutes a rural area. However, an urban area is defined as per
the Census of India as “all places with a municipality, corporation, cantonment or a notified town area”
and “all other places satisfying the following criteria: (a) minimum population of 5000, (b) at least 75
percent of male working population in non-agricultural pursuit, and (c) density of population of at least
400 persons per square kilometer”. Therefore, an area that does not satisfy the criteria specified above
can be considered a rural area. For our purpose, we define rural marketing as any marketing activity in
which one dominant participant is from a rural area.

For the purpose of defining the domain of rural marketing, “rural” and “urban” can be visualized on a
continuum, consisting of three broad groups, namely, rural, rurban and urban. The construct called
rurban is the overlap between rural and urban, with physical features closer to urban areas and proximity
to large urban centers, but with deep rural sociological moorings. The domain of rural marketing, thus,
can be seen in a two-dimensional space as a flow of goods, services, and ideas from one area to another,
except in the case of urban to urban flow. According to the National Commission on Agriculture – “Rural
Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves
all the aspects of market structure or system, both functional and institutional, based on technical and
economic considerations, and includes pre and post harvest operations, assembling, grading, storage,
transportation and distribution”.

xv
 Chapter 2
RESEARCH
METHODOLOGY

xvi
 3.1 RESEARCH DESIGN

Exploratory research is designed to describe the behaviour of rural consumers and factors towards trying
new snacks. Exploratory research needs to be conducted first to have a platform that allows for collation
of data required in descriptive research.

This research design is equated with qualitative and quantitative research methods.

I. Surveys are the prime form of quantitative research method and are evaluated against the strengths and
weaknesses of statistical, quantitative research methods and analysis.
II. Case studies, books, online journals on the other hand are often seen as prime examples of qualitative
research which adopts an interpretive approach to data, studies consumers within their context and
considers the subjective meanings that people bring to their situation.

3.2 SAMPLING

Sampling Size: The skill mapping was conducted for the rural consumers of Machhra village. To draw
conclusions, a total of 200 villagers were taken within the age group 12 to 55 and the survey was
conducted in Machhra village.

Sampling method: The survey was aimed at rural consumers of Machhra village therefore a
combination of Judgement Sampling with Simple Random Sampling was adopted.

3.3 INSTRUMENT

In order to gauge some quality or ability of subjects the Questionnaire was used to elicit the data for the
study. Questionnaire was designed to gather information about the employee behaviour and their
knowledge, attitudes and beliefs regarding the adoption of the application for skill enhancement. This
provided a quantifiable result to the researcher which made the analysis of the study easy, quick and
economical.

3.4 DATA COLLECTION

Primary and Secondary Data Collection: To achieve the objective of the study, the primary data have
been collected through questionnaire. This questionnaire aims to gather information related to
customers’ expectations and observations. The secondary data implies already available data. (Books,
library).

3.5 CONSTRUCTING THE QUESTIONNAIRE

After the choice of research design, it was decided that in order to address the possibility of the
respondents feeling tired or not fully participating survey, the survey should be kept short. Researcher
selected questions for which the answers are important or useful to know. The survey began with an
introduction message to inform participants of the aim and goal of the study, so to encourage them to

xvii
answer. Also, the focus is to use open questions instead of closed ones in order to place more importance
on the respondents’ answers and to have a larger variety of answers.

The survey was separated into three parts: demographic information about the respondent. Additionally,
questions about age, gender and service line were also addressed. In first part of the questionnaire, the
survey is bifurcated into two parts depending upon the option selected by the respondent. Further, based
on factors identified in the conceptual framework as the main drivers to need recognition, it was then
important for this research to ask if Lays can be seen as an option for respondents.

In the context of the survey, the majority of the survey questions were presented as open answer
questions in order to generate a broader view of the participants and permit different opinion to be taken
into consideration. Also, as mentioned before, it is a way to gain insight of the data collected and give it
more credibility in case of low response rate.

xviii
 Chapter 3
DATA ANALYSIS

xix
 This section will contain findings from the empirical study based on the responses of 200 respondents.
The chapter examines and analyses the data gathered from the respondents on their behaviour towards
snacking options. This research was done to gauge the strengths and weakness of the current and as a
pre-requisite to designing a marketing campaign. Responses for certain questions were more than the
number of employees as the respondents had to choose from more than one option.

3.1 Demographics

1) Name

2) Age

Table 3.2: Age of the respondents

Age Range Respondents

12-20 65

20-25 60

25-35 40

35-55 35

RESPONSES
12 to 20 20 to 25 25 to 35 35 to 55

18%
32%

20%

30%

Figure 3.2: Age of respondents

From the above pie-chart, the researcher has bifurcated the respondents into 4 categories age range 12-20, 20-
25, 25-35, 35-55. Out of the 200 respondents, 32% are in the age group 12-20, 30%.are in the age group 20-
25, 20% are the in the age group 25-35 and 18% in age group 35-55.

xx
 3) Gender

Table 3.3: Gender of respondents

Gender Respondents

Male 116

Female 84

RESPONSES
male female

42%

58%

Figure 3.3: Gender of respondents

The respondents are divided uniformly between males and females to make the analysis more effective. Out
of 200 respondents 116 were male and 84 female. It is an important demographic factor to gauge the difference
between the attitude and behaviour of both males and females. Both the groups tend to show different
characteristics wrt to age, marital status and occupation.

4) Do you prefer to eat snacks?

Table 3.3: Snacks preference

Snack Preference Respondents

Yes 194

No 6

xxi
 RESPONSES
yes no

2%

98%

Figure 3.3: Service line of respondents

From the 200 respondents, 98% respondents would like to have snacks or open to have snacks and 2%
do not eat snacks be it chips, biscuits, bhujia etc.

5) What type of snacks do you prefer?

Table 3.4: learning new skills

Options Respondents

Chips 116

Biscuits 86

Bhujia 78

Other 10

xxii
 RESPONSES
chips biscuits bhujia other

0%

28%

41%

31%

Figure 3.4: learning new skills.

Out of the 200 respondents 41% respondents prefer chips. 31% responses are in favour of biscuits and
28% prefer bhujia namkeen. This reflects the preference of Marchha villagers.

6) Who all in your family prefer chips?

Table 3.5: Family members who prefer eating chips.

Options Respondents

Children 166

Mother-Father 40

Grand Parents 10

All 8

Respondents
180
160
140
120
100
80
60
40
20
0
Children Mother-Father Grand Parents All

Respondents

Figure 3.5: Family members who prefer chips

xxiii
Out of the 200 respondents, the majority 166 of them selected the option that children are the mail consumers
of chips, followed by parents and then grand parents. Only 10 family respondents believed that all the family
members in house eat potato chips.

7) How often do you purchase chips?

Table 3.6: Purchase timing

Options Respondents

Daily 98

Twice a week 73

Weekly 20

Monthly 9

Respondents
120

100

80

60

40

20

0
Daily Twice a week Weekly Monthly

Respondents

Figure 3.6: Purchase timing

Out of 200 employees, 98 prefer to buy chips daily, 73 would buy chips twice a week, 20 would buy weekly
and only 9 wait for a month to be buying chips.

xxiv
 8) Which package size of chips do you prefer?

Table 3.7: Package Size

Package Size Respondents

Rs. 5 103

Rs. 10 68

Rs. 20 20

Rs. 35 0

RESPONDENTS
Rs. 20
10%

Rs. 5
Rs. 10
54%
36%

Figure 3.7: chips package size

The survey taken of 200 respondents reflected that 54% of prefer the smallest packet size, followed by 35%
respondents preferring Rs. 10 package, 10% will prefer Rs. 20 packet. None of them would prefer Rs. 35
packet because small packer sizes are widely available as compared to large package size.

9) What factors affect you to buy chips ?

Table 3.8: factors affecting purchase of chips.

Factors Respondents

Price 130

Taste 57

Variety 45

xxv
 Quantity 78

Availability 23

Promotions 92

Respondents
140

120

100

80

60

40

20

0
Price Taste Variety Quantity Availability Promotions

Respondents

Figure 3.8: factors affecting purchase of chips.

Out of the 200 respondents 130 responses were in favour of price a the most important factor for purchasing
chips followed by promotions and quantity. This means that the rural consumers instead of being variety
seeking gives prominence to affordability and value for money.

9) Have you heard about the brand Lays for potato chips ?

Table 3.9: Lays brand awareness

Options Respondents

Yes 68

No 132

xxvi
 RESPONDENTS
Yes No 4th Qtr

34%

66%

Figure 3.9: Lays brand awareness

Out of the respondents 66% haven’t heard or know of the brand lays for potato chips. However 34% are aware
about the brand. This is an interesting coorelation with the age since most of the young population knows
about the brand as compared to their counterparts.

10) On which places lays has maximum consumers?

Table 3.10: Availability of Lays

Places Respondents

Schools/Colleges 29

Public Places 92

Railway/ Bus Stand 43

Respondents
120

100

80

60

40

20

0
Schools/Colleges Public Places Railway/ Bus
Stand

Respondents

Figure 3.10: Preferred timeline

xxvii
Out of the 200 respondents maximum villagers believe that lays is found mostly at public places or
public addas as compared to that of school colleges or bus stands. The researcher could see small
unorganised stores where chips and other kind of snacks were widely available with local brands taking
the centre stage.

11) Out of the following chips brands what all will you prefer to have? And why ?

Table 3.11: Chips brand preference

Brands Respondents

Lays 29

Kurkure 17

Haldirams 92

Diamond 27

Bingo 18

Balaji 40

Respondents
100
90
80
70
60
50
40
30
20
10
0
Lays Kurkure Haldirams Diamond Bingo Bikaner

Respondents

Figure 3.11: Preferred chips brands

xxviii
 Out of the 200 respondents, the most popular brand of chips is Haldirams ruling the market share of
chips segment. This is followed by other players like Balaji and Diamond and then Lays. Therefore there
is still liking for lays but a missed potential. Marketing campaigns should be tailor made for the Lays
brand to tap this potential of lays brand.

12) How much would you rate your preferred brand product?

Table 3.12: Chips brand rating

Rating Respondents

Excellent 76

good 105

Average 19

Column2
10% 0%

38%

52%

Rating Excellent good Average

Figure 3.12: Preferred chips brands

The preferred brand of 200 respondents are found to be excellent by 38% of the respondents. However, their
loyalty may switch and they are looking for more options since 52% respondents find their preferred brand
to above average.
13) Are you open to try new product brands?
Table 3.12: openness towards trying new brands

Options Respondents

Yes 176

No 24

xxix
 Respondents
12%

88%

Yes No 4th Qtr

Figure 3.12: Preferred chips brands

The 200 respondents are eager to try new products which could be seen from the data in which 88%
respondents are open to try new products. This could be an opportunity for lays to have a need gap
analysis and fill in the gap by providing the rural consumers a value for money offering.

xxx
Chapter 4
FINDINGS

xxxi
xxxii
 Chapter 5
CONCLUION

xxxiii
6.1 SUMMARY

Rural marketing is a developing concept, and as a part of any economy has untapped potential; marketers have
realized the opportunity recently. Improvement in infrastructure and reach promise a bright future for those
intending to go rural. Any macro-level strategy for these markets should focus on availability, accessibility and
affordability

The future of India Snacks Market can be judged from the fact that this industry is expected to grow with double digit
CAGR for the time frame of 2018 to 2024. India snacks market is dived between organized players and unorganized
market. At present Unorganized market is dominating the India snacks market. But this scenario is expected to change
during the forecast period of 2018-2024. India Snacks Market is growing due to following factors Lifestyle Changes,
Rising Urbanization, Growing Middle Class Population, Local Availability and Availability of Snacks in Small
Package Size, Low Price and Company’s Strategies to focus on regional taste.

The report provides a comprehensive assessment of the fast-evolving, high-growth India snacks Market. This market
research report provides information on snacks market and market share by organized & unorganized sectors, snacks
products segmentation by Extruded Snacks, Chips, Namkeen, Others; with key companies’ Business Strategies in India
snacks market. This report also identifies the key Growth Drivers and Challenges of the industry. Primary research on
consumer preferences of various snacks product segments, snacks prices and brands captured in this report.

6.2 RECOMMENDATIONS AND SCOPE FOR FURTHUR STUDY

Indian rural consumer durable market is very vast size and having lot of opportunities. To capture the rural
markets, the industries which are producing/ marketing the snacks and beverages, for that they has the follow
the different types of creative strategies to tapping the rural markets. And to know consumer behaviour is also
important for tapping rural markets.

1. Modify the product to market it more suitable for the needs/usage conditions of rural consumer.

2. Develop entirely new products for rural markets.

3. To capture durable market share, the organizations has to consider the pull strategy and push strategies in
rural market.

4. To promote the potato chips products in markets better to use mixed strategies of promotional techniques in
rural market.

5. To select best pricing method for chips, by considering demand of the product, competition, infrastructure
facilities, economic conditions of particular rural areas.

6. By conducting the campaigns, exhibitions and trade fairs to crate the awareness about products and brads.

7. Arrange customer care units it all areas for clarifying and giving the information about their products.

8. Collecting feedback among the products after using the products in terms of price, taste, availablity, and
satisfaction.

9. By considering the density of people, the organizations have to establish or open new point of purchase ideas.

10. To encourage social activities for development of rural areas for brand loyalty.

xxxiv
 11. It is better to use right promotional techniques in rural areas for win rural consumer’s mind.

12. Impact of socio-economic variables on rural consumer behaviour requires an enquiry.

13. Consumer –seller relationship in rural areas is an interesting area of study. Such a study will help in
identifying the factors responsible for enhancing sales and consumption in rural areas.

6.2 LIMITATIONS

I. The data collected through survey is subjective in nature.

II. Nature of rural market.
III. Lack of uniformity in secondary survey data.
IV. Sensitivity of Rural people.
V. Comprehension of research tools.

xxxv
REFRENCES

[1] Dr. Rajagopal, Development of Agricultural Marketing in India, Published by Print well , Jaipur.

[2] J.B.Ambekar yadav , Communication and Rural Development, Published by Mittal Publications
(New Delhi), 1992.

[3] Jillian,C.S. & Macy, C..2002, Understanding consumer-service brand relationships: A case study
approach, Australasian Marketing Journal, (2).

[4] Manohar Lal Jalan Marketing of Agricultural inputs, Published by Himalaya Publishing House
(Delhi), 1988.

[5] Philip Kotlar , Marketing Management, 1992. 8th [9] R.S.N. Pillai & Bhagavathi, Marketing
Management, S.Chand & Co Publishers, 2010. edition.

[6] Raj kumar Singh, Agricultural Price Policy in India, Published by Print well Publishers (Jaipur),
1990.

[7] Ravindranath V. Badi and Naranyansa V. Badi, Rural Marketing, Himalaya Publishing,2004.

[8] T.P. GopalSwamy , Rural Marketing, Published by Wheeler Publishings (New Delhi)1998.

[9] https://www.prnewswire.com

[10] http://www.miteshk.webs.com.

xxxvi
 APPENDIX

Consumer Behaviour Index-

रूरल क्षेत्र में लैस चिप्स पर सवाल

नाम:

चलिंग:

उम्र:

1. क्या आप स्नैक्स/ नाश्ता खाना पसिंद करते हैं ?

o हााँ
o नह िं

2. आप कौन से स्नैक्स/ नाश्ता का सेवन करते हैं ?

 चिप्स

 चिस्कुट
 भुचिया

 अन्य

3. आपके पररवार में कौन लोग चिप्स पसिंद करते हैं ?

 िच्चे
 माता-चपता
 दादा दाद
 सि

4. आप चकतन िार चिप्स खर दते हैं ?

o रोि

o एक हफ्ते में दो िार

o साप्ताचहक
o मह ने में

5. चिप्स का कौन सा पैकेि आकार पसिंद करते हैं?

xxxvii
o 5 रु

o 10 रु
o 20 रु

o 35 रु

6. चिप्स खर दने के चलए कौन से कारक आपको प्रभाचवत करते हैं ?

 मूल्य
 स्वाद

 मात्रा
 उपलब्धता

 प्रिार / चवज्ञापन

7. क्या आपने लैस आलू के चिप्स के चलए ब्ािंड के िारे में सुना है?

o हााँ
o नह िं

8. चकस स्थान पर लैस के अचिकतम उपभोक्ता हैं ?

o स्कूल / कॉलेि

o सावविचनक स्थान
o रे लवे / िस स्टैं ड

9. चनम्नचलखखत चिप्स ब्ािंडोिं में से कौन सा आप पसिंद करें गे ? और क्योिं ?

 लैस

 हल्द राम
 िालाि

 डायमण्ड

 चििंगो
 आकाश

 ि कानेर

10. आप अपने पसिंद दा ब्ािंड उत्पाद को चकतना रे ट करें गे ?

o अचत उत्कृष्ट
o अच्छा
o औसत

11. क्या आप नए उत्पाद ब्ािंडोिं का सेवन करने के चलए तैयार हैं ?

xxxviii
o हााँ

o नह िं

xxxix